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Nike Expands "Fast" Supply Chain Program

2017-01-16

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American sporting goods leader Nike is accelerating its supply chain process, and by expanding a new "Express Lane" manufacturing program, making the product faster to market.

The process is currently being used in the Nike footwear production line, the "think of the time to market" from a few months to a few weeks, becoming the sports apparel group "important competitive advantage."

The details of the new plan were not disclosed in the group's second quarter earnings presentation, but Chief Executive Mark Parker said Nike did not perform as well as expected in some areas, as market analysts put it.

"We have always been at the right time to provide consumers with high-energy products, and the effectiveness and creativity in a wider range of areas, which need to continue to invest in manufacturing innovation and the entire supply chain to speed up and improve Speed ​​and agility are key to success today and help lay the foundation for future growth. "

Nike has been using Express Lane manufacturing model developed LunarCharge comfortable shoes, and to go (2016) in December limited edition.

"We've been able to act quickly and respond to what we've done with Express Lane," said Trevor Edwards, president of Nike. "We're going to make it part of our execution and operations, especially in terms of performance. A quarter of products on behalf of the example, the product is completely from scratch, made of finished products and then sold to the market, and sales are quite good.

Edwards said Nike will continue to use Express Lane and its process as a "competitive edge" tool, and eventually transferred to the clothing production line.

"As a Nike product fan, Nike has the ability to have this advantage, and can bring this advantage to a higher, more different state and feel very excited."

"Our investment, process innovation and our speed and flexibility enable us to create products closer to consumers while increasing labor productivity and reducing material waste.With the world becoming more and more diverse, we can not Satisfied with the leading position in supply chain innovation ".

In the December quarter (2016) Nike announced in the second quarter earnings, showing the strong demand in the Chinese mainland and the US domestic market, and basketball series sales are expected to rebound.

Net income for the three months to November 2016 grew 7% to $ 842 million from $ 785 million for the same period in 2015, while revenue grew 6% to $ 8.2 billion.

Nike said that they (2016) in the fourth quarter to make good use of the portfolio of opportunities to strengthen and expand its leadership position. In particular, the company's sales in the basketball series rebounded, but recently still under a lot of pressure, especially from the opponent Under Armor launched NBA star Stephen Curry signature shoes.

The company also pointed out that the company's investment has "made great progress" in balancing supply and demand in the North American market in order to boost market growth and has "strong and stable momentum" in the Greater China region.

In fact, Nike sales in the North American market has grown 3% to $ 3.65 billion; Western European sales rose 7% to $ 1.38 billion; Greater China's sales grew 12% to 1.05 billion US dollars .